Eros International plc - News Room: Press

Eros International plc: Full Year Unaudited Results for the twelve months ended 31 March 2008

25/06/2008

EROS POSTS RECORD EARNINGS AHEAD OF MARKET EXPECTATION
PRE-TAX PROFITS JUMP 47%

London: Eros International Plc (“Eros” or the “Group”), the leading integrated group within the Indian film and entertainment sector, today announced record full-year profits and sharply increased revenues – for the 12 months ending 31 March 2008 – amid strong growth in the Indian media and entertainment sector which is worth $13 billion today and estimated to grow to $30 billion by 2012.

Kishore Lulla, Chairman and Chief Executive, said: “I am proud that Eros International has delivered record results for the second successive year, building on our 30-year leadership in the industry. The performance in the past financial year reflects the competitive advantage enjoyed by Eros, based on unrivalled content ownership and global distribution.”

Financial Highlights

Profit before tax up 47.2% to US$ 45.5 million (2007: US$ 30.9 million)
Group turnover up 70.2% to US$ 113.0 million (2007:US$ 66.4 million)
Gross Profit up 57.9% to US$ 63.0 million (2007: US$ 39.9 million)
EBITDA up 60.4% to US$ 77.8 million (2007:US$ 48.5 million)
Cash generated from operations US$79.8 million
Basic EPS per share up 12.0% to 33.5 cents (2007: 29.9 cents)

Operating Highlights and Growth Drivers

Indian Box Office

18 films were theatrically released in 2008 out of which 16 were released globally. (2007: 4 global releases)
5 out of the top 10 box office successes were Eros releases with Om Shanti Om going on to become the highest all time grosser at the time of the release
Strength of portfolio approach - proving that it is not a ‘hit’ driven business
Worldwide theatrical Revenues grew by 146.9% to $52.1 million (2007: $21.1 million)

Television

Strong television syndication deals of new and catalogue films were concluded with Sony Entertainment Television, Inx Network, Viacom Network and Sahara Television and several other international networks
Revenues from TV syndication up 56.3% to $33.0 million (2007: $21.1 million)
New model gives increased visibility for 2009 television syndication revenues

Digital and Home Entertainment

Subscription Video On Demand platform continued to grow not only on Comcast and Rogers but with new deals such a Cablevision, Valuable Technology, Mauritius Telecom, SingNet, RTM Malaysia and Aksh Optifibre
Digital distribution deals were concluded with Amazon and Walmart
The Eros partner channel on Google’s YouTube continued to gain eyeballs with 42 million hits to date - monetised through ad supported model
Revenues from New Media up 16.9% to $27.7 million (2007: $23.7 million)

Content Library and Distribution

Augmented library of 1900 films with fresh acquisitions during the year
Invested $200m across 60 projects giving full visibility of release schedule to 2010
Global distribution network expanded – nationally within India and emerging markets such as Germany, Poland, Belgium and South East Asia
The catalogue generated revenues of over $23 million which is a key competitive advantage for the company

Outlook

Hollywood collaborations for India – Following the announcing of the co-production joint venture with Sony Pictures earlier in the year, the Company announced a distribution joint venture for South Asia with Lionsgate where the entire Lionsgate library and format rights of over 13000 titles and their forthcoming films will be exclusively exploited across all formats including dubbing subtitling and remaking the content.
Television Broadcasting – the Company exercised its option on the B4U shares and now owns 24% of the worldwide Movies and Music network of B4U channels. The Company further intends to expand into the television broadcasting industry over the next 12 to 18 months through a combination of acquisitions; joint ventures or alliances to tap into what is forecast be a $15 billion segment by 2012 with growth propelled by subscription and advertising revenues and the expansion of DTH into India.
Organic growth from investment in content – At a time when talent costs are pushing up content costs and creating a barrier to entry for new players to secure content, the Company having already secured over 60 projects through an investment of over $200 million over the last 2 years, will greatly profit from the growing box office driven by multiplexes and rising ticket prices.

Kishore Lulla added: “Eros will pursue continued growth as well as maintain its lead in consolidating this lucrative yet fragmented sector, ensuring the Company maintains its market leadership through a combination of alliances, acquisitions and organic investment.”

Enquiries:

Eros Kishore Lulla - Chairman & CEO Jyoti Deshpande - COO & Commercial Director Andrew Heffernan - CFO	+44 (0)20 8963 8400

Brunswick Jonathan Glass Aideen Lee	+44 (0)20 7404 5959

Evolution Securities Limited Tom Price Jeremy Ellis	+44 (0) 207 071 4300

View the full press release (PDF format).